Effect of Government Budget Deficit on Employment in Iran

Looking at budget deficits in reveals that budget deficit in Iran has a long history and government has been encountered this issue before and after Islamic revolution. In other words, overreliance on foreign exchange earnings from export of oil and gas and inability of financial sector in earning higher incomes have led to economic dependence on external factors and some crisis as war, US sanctions etc. have caused the unbalanced budget state and consequently the budget deficit. So government budget deficit in economy has lost its active fiscal policy and is very different from theoretical foundations of the state budget deficit in order to create economic boom as described by famous economist as "Keynes" economics.Given the fight and combating against poverty in society, employment becomes more significant and it can meet basic needs of families and providing minimum acceptable level of life. Accordingly, this paper aims to assess effect of budget deficit on employment using Autoregressive-Distributed Lag from ۲۶۷۳ to ۳۱۲۴ and the results showed the negative impact of budget deficit on employment.